We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where GE Aerospace (NYSE:GE) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
A technician in a power station monitoring the flow of energy generated by a gas turbine.
GE Aerospace (NYSE:GE)
Like many other aerospace stocks, GE Aerospace is set to benefit from the rise in air travel demand as well as the increase in global defense spending. GE makes jet engines and commands the largest installed base of customers in the world.
Redburn Atlantic recently initiated coverage of the stock and assigned it a target price of $250, a 30% upside from current levels. The financial firm sees sustainable growth in the next decade with limited downside risk. GE Aerospace management is good at capital allocation which is why the company commands a premium valuation.
In 2025, the company expects a low double-digit revenue growth and a 15% earnings growth. Increasing orders from global customers isn’t something new for GE. However, with investment in the new MRO (Maintenance, Repair, and Overhaul) facility, growth in the aftermarket services segment can easily strengthen the company’s overall business.
Investors will be better off buying the company at an expensive price for its earnings and cash flows rather than waiting for a sell-off to start taking positions. Waiting for a dip could mean missing out on potential near-term returns as the world rushes to increase its defense spending.
Overall, GE ranks 4th on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of GE as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as GE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
